United Fire Group (NASDAQ:UFCS) Sets New 12-Month High Following Earnings Beat

United Fire Group, Inc (NASDAQ:UFCS)’s stock price hit a new 52-week high on Tuesday following a stronger than expected earnings report. The company traded as high as $54.63 and last traded at $52.6480, with a volume of 17302 shares changing hands. The stock had previously closed at $52.09.

The insurance provider reported $1.30 EPS for the quarter, beating analysts’ consensus estimates of $0.69 by $0.61. The business had revenue of $383.73 million for the quarter, compared to the consensus estimate of $347.76 million. United Fire Group had a net margin of 9.16% and a return on equity of 14.65%.

United Fire Group Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 19th. Shareholders of record on Friday, June 5th were paid a dividend of $0.20 per share. This represents a $0.80 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date was Friday, June 5th. United Fire Group’s payout ratio is currently 16.13%.

United Fire Group declared that its Board of Directors has approved a share buyback program on Wednesday, May 20th that authorizes the company to buyback 2,000,000 outstanding shares. This buyback authorization authorizes the insurance provider to buy shares of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on UFCS shares. Weiss Ratings reiterated a “buy (b)” rating on shares of United Fire Group in a report on Wednesday, May 13th. JonesTrading increased their price objective on shares of United Fire Group from $40.00 to $45.00 and gave the company a “buy” rating in a research report on Thursday, May 7th. Wall Street Zen cut shares of United Fire Group from a “strong-buy” rating to a “buy” rating in a research report on Sunday. Piper Sandler raised their price target on shares of United Fire Group from $45.00 to $57.00 and gave the company an “overweight” rating in a report on Thursday, May 7th. Finally, Zacks Research lowered shares of United Fire Group from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Three analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company’s stock. According to data from MarketBeat.com, United Fire Group presently has a consensus rating of “Moderate Buy” and a consensus price target of $51.00.

Insider Activity at United Fire Group

In related news, Director George D. Milligan purchased 4,500 shares of the firm’s stock in a transaction dated Friday, June 5th. The stock was acquired at an average price of $45.23 per share, with a total value of $203,535.00. Following the completion of the transaction, the director owned 90,034 shares of the company’s stock, valued at $4,072,237.82. This represents a 5.26% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 6.06% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in United Fire Group by 2.4% during the fourth quarter. Vanguard Group Inc. now owns 1,511,541 shares of the insurance provider’s stock valued at $54,945,000 after buying an additional 35,338 shares in the last quarter. Los Angeles Capital Management LLC grew its position in shares of United Fire Group by 111.0% in the 4th quarter. Los Angeles Capital Management LLC now owns 57,647 shares of the insurance provider’s stock worth $2,095,000 after acquiring an additional 30,328 shares in the last quarter. Jupiter Asset Management Ltd. acquired a new position in shares of United Fire Group in the 4th quarter worth approximately $1,524,000. Intech Investment Management LLC increased its holdings in shares of United Fire Group by 320.9% in the 4th quarter. Intech Investment Management LLC now owns 50,925 shares of the insurance provider’s stock valued at $1,851,000 after acquiring an additional 38,825 shares during the last quarter. Finally, Sierra Summit Advisors LLC bought a new stake in shares of United Fire Group in the 1st quarter valued at approximately $933,000. 62.68% of the stock is currently owned by institutional investors.

United Fire Group Stock Performance

The company has a current ratio of 0.34, a quick ratio of 0.34 and a debt-to-equity ratio of 0.15. The firm has a market capitalization of $1.39 billion, a price-to-earnings ratio of 10.91 and a beta of 0.50. The company has a 50-day moving average of $49.53 and a 200-day moving average of $42.88.

About United Fire Group

United Fire Group, Inc (NASDAQ: UFCS) is an insurance holding company based in Cedar Rapids, Iowa, that specializes in property and casualty coverage for commercial and personal lines. The company underwrites business through three primary segments: commercial, personal and specialty insurance. Within the commercial segment, United Fire Group offers tailored policies for small- and medium-sized enterprises, including general liability, commercial property and workers’ compensation. Its personal lines cover homeowners, auto, farm and umbrella policies.

United Fire Group distributes its products primarily through a national network of independent insurance agents and brokers.